$1 USD, that's like $1 CAD?

[Andrew]

It would be very interesting time to live if oil production does start falling (past peak oil like the doomsayers predict, although peak oil has occurred, we just havn't seen a sharp enough drop in production). Even if tomorrow governments said we have 20 years at most of current consumption of oil, I would think renewable and nuclear power projects would skyrocket, and most things would turn to electrical generated instead of cars running on gas. Smart electrical grids would be very interesting especially with unpredictable renewable output, so distribution would be essential. Think of it like how bittorrent works, everyone gives and receives data (electricity) when needed. Maybe get credits ($) for giving out more electricity than consuming.

The conspiracy theorist in me thinks the high price of oil/gas in 2008 was because people knew the economy was going to crash, so doubling the price of oil products (oil/gasoline/diesel, home heating fuel), which every person in developed world depends on daily, was a great way to suck the last remnants of income from consumers before they could not afford it. Although oddly, everyone is still consuming it (omg its cheap again!), so not sure how true that would be.

Yes unemployment checks are almost too high. Around here some people work minimum weeks through summer (to get enough "stamps"), then go on pogey for winter and do nothing. With government workers, they're unemployment checks are higher than someone working fulltime at a lower wage! I think normally at $20 an hour x 40 hours per week = $800 normal wage per week, with unemployment they get like $600 a week which around here is a lot (for doing no work).

I don't think I expressed how important the dual income family nowadays compared to previous recessions (pre 1980s) where there was only 1 bread winner. Now if 1 out of 2 lose job, well someone is at least making money for family to survive. Sadly on another forum someone said they were dual income, and had no idea what they would do if one lost a job. Which to me makes the entire situation bad when families are financially planning long term around both people having jobs forever, with no short term (1 year) money to rely on for when someone loses a job.

Also hwi, if you or someone lost a job, (especially if got decent severance for 9 months), assuming the reason you lost job is because market for that industry sucks, would be a good time to get better education/skills (upgrade, or switch if you didn't like what you were doing). Much better idea in long run, but the temptation to take a vacation would be high. 8)

I think you will be correct about no near future bubbles (other than inflation problem which could sort itself by 2 years), because this recession is bad and will be felt for a couple years. One reason for this bad recession (not including all the known reasons), is because there have been no big recessions recently. 2001 recession lasted 6 months, mostly affected tech companies, didn't stop the massive growth. Previous recession was 1991. So 2008-1991 = 17 years. Lots of time for stuff to happen and not keep in check of reality. I think some were calling it "the new economy" or something.

The worst thing about world governments, is that they believe we can/should go back to the economy of 2006-2007 (or shortly before), and are willing to spend their way to it. They should stabilize unemployment, fix what broke, and be happy with a slower growing economy that they can control (to avoid bubbles or be blinded by insatiable thirst for wealth increases).

What some smart companies are doing, instead of laying off employees, they simply cut back hours for most of them (reduced work week). The government pays out unemployment insurance to make up the shortfall. A very good plan if business expect in 1 year for demand to pick up. No point in throwing away good employees, only to have to hire new ones in a years time.

Canada's Work Sharing program extended

Stanfield

[Andrew]

Already in the first 45 days of Obamas administration, the federal government has authorized more debt spending than Ronald Reagan did in eight years in office.

Hahahaha.

The interest on the national debt rises to $850 billion a year by the middle of the next decade, which will be the largest single expenditure item in the budget--eight times more than we now spend on education and four times more than we spend on homeland security. Federal spending remains well over 25 percent of GDP and in some years creeps closer to 28 percent of GDP under the Obama budget, which ironically enough is entitled "A New Era of Responsibility."

Hahahahha

[chatfsh]

Hahahahha

Are you trying to make me scream?

[Andrew]

WTO chief Lamy says protectionism is on the rise

17/20 G20 countries have enacted trade protectionism measures. This is bad.

G20 meetings this week. The protests in London should be interesting. Wonder what awesome policies world governments will agree to.

[chatfsh]

Well what do you know?  It seems that Obama is going to let General Motors Corp go bankrupt and will likely allow Chrysler to go bankrupt as well if they cannot strike an alliance with Fiat.  It

[Andrew]

With my post a couple days ago that pointed out USA government will be spending $850 billion to pay interest in near future, who will be receiving this interest money? almost sounds like a scam. Banks make large profits in late 1990s-2000s, then go bankrupt because they leveraged too much, get bailouts from government to keep them running, then will continue to make profits in future.

Yes, I think Obama is talking hard, to make himself look good. Maybe he knows they are going bankrupt so he is trying to distance himself from previously giving them bailouts (blaming them for not coming up with good plans, so he can let them go bankrupt). Or he is talking hard to make himself look good, and have it appear that car makers do have plans, so they can receive more bailouts. He is giving them another 60 days to come up with plans. I thought they already gave them an ultimatum a couple months ago to come up with good plans or go bankrupt.

What I don't understand is you have all these car companies, building cars similar to each other, and even building cars that are similar products (say honda civic and accord). Why not cut the number of different vehicles they produce in half, then they can focus R&D, marketing, production efficiency on selling less types of cars? People would be more willing to buy better vehicles, that cost less.

[chatfsh]

At this point, the 60 days is just a formality and it

[Tatar Khan]

I say control fail them so that they could be sold in parts to other manufacturers, than let the European cars come into the market.

[Andrew]

Than let the European cars come into the market.

But how am I supposed to drop my kid off for soccer practice in a small fuel efficient car!? Or buy groceries? Small cars are not safe to drive either.

;)

Maybe the solution would be if the US government taxed gas/oil more, say ~$3 a gallon, say add 50 cents a gallon tax every year for 5 years. It would solve budget deficits, reliance on foreign oil, and create demand for new fuel efficient vehicles which the big 3 could start producing within 5 years. Also increase demand for pulic transit so it would fix traffic problems.

Nah, America needs cheap gas to survive. :(

I am not sure how USA will supposedly get rid of dependence on foreign oil, if they require cheap oil. Best way to get rid of dependence is to increase price, not drill for oil along coastline or Alaska nature reserve, or any other idea.

Is Facebook gearing up for an IPO?

If that does happen, I hope we get another tech bubble bursting. Or most likely it will end up being another overpriced tech company, just like all the others over the past 10 years.

EDIT:

Foreign automakers should be forced to build cars here: CAW

Mazda Motor Corp. and other offshore automakers should build vehicles in Canada if they want access to the domestic market, the president of the country’s largest private sector union said in a strong rebuke of federal industrial policy.

How about no, and I hope the industry collapses and you lose your job.

If cars made in Canada were of good quality and price, and what the consumer wanted, they will buy your vehicles. Don't screw consumers over just because you can't compete with products being built in another country.

I remember being told several years ago that Ford doesn't make money selling vehicles, they make money financing them.

[chatfsh]

But how am I supposed to drop my kid off for soccer practice in a small fuel efficient car!? Or buy groceries? Small cars are not safe to drive either.

;)

I

[Andrew]

Competition bureau probes credit card fees

So because of credit cards, the prices of many goods are 2% higher. These credit card companies make lots of money. They make 2% on every CC purchase. They make money by charging 20% interest on outstanding balances, and they make money by selling customer information (customer purchasing trends etc).

Hope government steps in and regulates them better.

Visa eyes debit cards

Visa wants to get into debit card segment. Interac is non profit, and Visa will probably try to mess it up.

[chatfsh]

WTO chief Lamy says protectionism is on the rise

17/20 G20 countries have enacted trade protectionism measures. This is bad.

The G20 countries have pledged to reject protectionism and to avoid any new trade barriers.

The G-20 leaders today reaffirmed

[Tatar Khan]

But how am I supposed to drop my kid off for soccer practice in a small fuel efficient car!? Or buy groceries? Small cars are not safe to drive either.

;)

Maybe the solution would be if the US government taxed gas/oil more, say ~$3 a gallon, say add 50 cents a gallon tax every year for 5 years. It would solve budget deficits, reliance on foreign oil, and create demand for new fuel efficient vehicles which the big 3 could start producing within 5 years. Also increase demand for pulic transit so it would fix traffic problems.

Nah, America needs cheap gas to survive. :(

I am not sure how USA will supposedly get rid of dependence on foreign oil, if they require cheap oil. Best way to get rid of dependence is to increase price, not drill for oil along coastline or Alaska nature reserve, or any other idea.

Well that sounds a lot like the US diplomat that I meat a week ago. He also was talking about increasing the price of carbon to drive green tech. he also pointed out how that would screw over the developing world. I guess I should post my notices from the meeting.

Foreign automakers should be forced to build cars here: CAWHow about no, and I hope the industry collapses and you lose your job.

If cars made in Canada were of good quality and price, and what the consumer wanted, they will buy your vehicles. Don't screw consumers over just because you can't compete with products being built in another country.

AMEN to that!

[Andrew]

Federal government to back warranties for GM, Chrysler: Clement

So the government is bailing them out. And if they fail they will pay for warranties on sold vehicles. This is a disaster.

They did the same thing in USA last month.

Tories mull $150M in aid for private TV broadcasters

So when CBC asked for emergency funding (they didn't actually ask for more money), Harper denied it. But now Harper has found money for two privately owned broadcasters? wtf? Yet another nail in the coffin for public arts funding. Seems like he wants to kill CBC.

[Sneakgab]

Well that sure sounds like a recipe for unbiased and uncorrupt TV news... (Sarcasm)

As though the mainstream news wasn't bad enough (not that I pay any attention, but that seems to be the general feeling. Obviously I can't really say much though)

[Andrew]

Tea Party Protests Are Profitable

Those anti-tax Tea Parties that are sprouting up from coast-to-coast have created their own stimulus. Retailers have sold hundreds of thousands of dollars in Tea Party-inspired merchandise.

Is there anything capitalism can't do?

[Sneakgab]

Sell cars?

[Andrew]

Bank of England Pension Fund Surges Betting on Inflation

For years central bank under reports inflation. Now that recession occurs they over report deflation. The central bank is betting that massive inflation will occur soon. But of course they don't want you to know that, and will continue to steal your money by over inflating money supply.

I still love the people who say:

B-b-b-b-but the stock market lost 50% of wealth in past year! We need this inflation!

Just because a house lost 50% of value does not mean that it was physically split in half. It was overpriced, it corrected itself, and it shouldn't matter because you should have only bought that house if you could afford it. Unless you were planning on flipping it, and not living there long term (which is what houses are for, you know to live in).

Yah, let's get the DJI back to 14,000 as soon as possible so we can get to the next recession and multiple bubbles faster without fixing anything that has been broken for the past 10-40 years. 10 years ago tech bubble problem that is still around, 40 years ago reliance on oil that is still a problem. And lets not forget about debt bubbles.

EBay Unloads StumbleUpon

EBay, which bought StumbleUpon two years ago for $75 million, said it had become apparent there are few long-term, strategic synergies between StumbleUpon and eBay's other units. The San Jose, Calif., company didn't disclose how much it sold StumbleUpon for.

$75 million for that program!? Or how about when eBay bought skype for $2.2 billion. That's some crazy money to be spending on stuff that could be easily replaced.

[exatreide]

I use stumble, its a great program and a great way to advertise products, sites, blogs directly to people who are interested. I'm quite happy ebay sold it, it has been quite stagnate since they purchased it.

[Tatar Khan]

Sell cars?

Japanese, Koreans and Germans, Swedes and Czech are doing a fine job it is only France and US that are not that great at it.

(which is what houses are for, you know to live in).

No houses are there to speculate on them, why bother with the risk of a stock that is worth hundreds when you can speculate on hundred thousands?

[Andrew]

Japanese, Koreans and Germans, Swedes and Czech are doing a fine job it is only France and US that are not that great at it.

Saw on local news last night that minitrucks (from europe or asia) are selling very well in Nova Scotia. They are fuel efficient, and can cary stuff in back like other trucks. Good for small-average items that can't fit in car or SUV.

[Tatar Khan]

I saw a lot of useful models in Europe that could be used here, their minivans are made so they carry more people but same size as ours and still roomy enough. I think there is certain restrictions on imports of foreign cars thanks to the auto pact and NAFTA

[Andrew]

A Warning About The Tea Parties

A number of people I have spoken with are planning to attend a "tea party" tomorrow, so I thought it might be a good idea to write about this. They are not what they claim to be. They are not "spontaneous" or "grassroots." They are another corporate-funded campaign to trick people into supporting more cut taxes for the rich.

EDIT:

From what I saw in pictures from yesterday, is that it was a republican front. Anti obama, anti abortion, anti socialism. Pretty much the same stuff you saw during the election from Republicans. I'm guessing most of these "anti socialism" people have never been to Canada or Europe.

Slideshow of protests. You know it's a republican front when they get Joe The Plumber to guest speak.

The real unemployment rate? Try 15.6%

Chart of public sector debt vs private sector debt vs economy. Private sector took on much more debt than anyone else.

EDIT:

Ottawa willing to let GM, Chrysler collapse

Sweet.

How about they start financing ZENN electric cars instead. I'm sure all the money they blew on big companies could have created many better electric cars that would sell cheap. Finance small car companies that are doing something different, instead of the car companies that have not changed (the big ones don't make cars, they sell finance).

[Tatar Khan]

Ottawa willing to let GM, Chrysler collapse

Sweet.

How about they start financing ZENN electric cars instead. I'm sure all the money they blew on big companies could have created many better electric cars that would sell cheap. Finance small car companies that are doing something different, instead of the car companies that have not changed (the big ones don't make cars, they sell finance).

That is funny I watched his announcement live and he never mentioned GM, only Chrysler was mentioned.

Completely electrical cars are not going to be very successful. They have a a limited charge of the batery and so far there are no places where they could be recharged. Thus hybrids will lead the way for some time.

[chatfsh]

I